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Photo of Senator Paul Doyle.

STATE SENATOR

Paul Doyle

Building a Democratic Budget Predictability Plan

Recently, I was pleased to lend my support to a Democratic Budget Predictability Plan that will help Connecticut avoid future revenue volatility while simultaneously reducing the chance of unpredictable budget deficits and paying down some underfunded liabilities.

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Our plan permanently caps the amount of revenue that the state can expect to collect every year from its highly volatile estimates and finals (mostly capital gains) portion of the state income tax; the plan caps those estimates at $3.1 billion per year, the current year's collection rate, and does not assume any more revenue will be collected from Connecticut's wealthiest residents. Any future revenues that might be collected above that would be dedicated to increasing the state's budget reserve (known as the 'Rainy Day Fund') or making payments on unfunded liabilities, such as employee retirement pensions.

We introduced this plan because in three of the past four years, executive and legislative budget analysts have been unable to accurately predict our income tax revenues, and the results have varied from alarming to disastrous. We cannot continue to grow Connecticut and provide the quality of life and jobs that our residents desire if we are hamstrung by decreasing revenues and increasing fixed costs. To assist us in having more predictable revenue and more stable future budgets, this proposal caps the amount of revenue we can expect to collect from Connecticut's ultra-wealthy residents. The less revenue we have to spend, the more austere our budgets will be. As a result, we will have fewer nasty budget surprises. I think it's a trade-off worth making.